Slumping auction prices point to fall in house prices

Really2

DaddyBear wrote: »

The average property sold at auction in August achieved a price of only 70 per cent of the amount that the same home could be expected to achieve in the conventional market, where homes are bought and sold through estate agents.

What so auction houses sell for less than those sold in EA shocker.

I think this is far more to do with stripped out repo's than anything else.
Repo houses usualy need some serious investment as all fixtures and fittings can be striped by the owner and sold.

Generali

purch wrote: »

Now I know how much 'money' I've lost in the last year, you're probably right :eek:

At the height of the financial crisis, the quote of the day on Bloomberg was, "This is worse than a divorce. I've lost half my wealth and still got my wife".

HAMISH_MCTAVISH

Really2 wrote: »

I think this is far more to do with stripped out repo's than anything else.
Repo houses usualy need some serious investment as all fixtures and fittings can be striped by the owner and sold.

Indeed. Most repo's never make it to auction, they get sold through normal channels first.

Now, with sales picking up, even less of the decent houses are making it to auction, and only the really poor stuff is getting through.

Sales mix changes, therefore average price goes down.

Simples.

But hey, at least it gives daddytroll something to get excited about.:rolleyes:

Generali

HAMISH_MCTAVISH wrote: »

Indeed. Most repo's never make it to auction, they get sold through normal channels first.

Now, with sales picking up, even less of the decent houses are making it to auction, and only the really poor stuff is getting through.

Sales mix changes, therefore average price goes down.

Simples.

But hey, at least it gives daddytroll something to get excited about.:rolleyes:

The implication of the article as I read it is that they are comparing like-with-like, not just using broad brush averages.

The houses are all different is well known by most people, including economists.

Really2

Generali wrote: »

The implication of the article as I read it is that they are comparing like-with-like, not just using broad brush averages.

The houses are all different is well known by most people, including economists.

I agree, but only the shell of a house is needed for like for like.

My EA family member as been given repos to sell where the electrical's have been riped out, heating, copper pipping, toilets, doors, etc, etc. They very rarely ar able to sell these as they are unhabitable unless you have somewhere else to live for a month or so (many don't without cost)

They are still the same house as the rest of the street, but they wont get the same price or interest as a well maintained house.

But it does not say like for like, the quote is

achieved a price of only 70 per cent of the amount that the same home could be expected to achieve in the conventional market where homes are bought and sold through estate agents.

Could is never a good word when trying to be factual.

Really2

OK fount the article on this is money.

I think I have found the problem with the survey.
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=490530&in_page_id=57&position=moretopstories

Fathom compared the prices of 93 properties sold at auction in August against a Zoopla estimate:eek: of what the same property would have achieved on the open market.

It is a very small sample set against prices that are not even sale prices.
By this I mean Zoopla a house on sale and see the estimated value (but also remember this still does not take in to account condition). I can remember my old house they valued at £225K We only marketed it at £195 and got £190 for it.
But perhaps their estimates have got better.

mewbie_2

Really2 wrote: »

I think I have found the problem with the survey.

Thank heavens for that. Otherwise your cosy little VI might have been briefly punctured.

Back on track with the never ending good news stories.

Really2

mewbie wrote: »

Thank heavens for that. Otherwise your cosy little VI might have been briefly punctured.

Back on track with the never ending good news stories.

considering we are all debating on a house price and economy forum I would have though we are all VI.

Is open debate not why we are here,
If I said prices had gone up based on the sale of 93 houses based on their value on zoopla I would be in a padded cell surrounded by men with white coats.;)

chucky

DaddyBear wrote: »

Auctions point to falls in house prices

when? 1 month, 3 months, 6 months, 1 year, 3 years?

can you explain how it points to falling house prices?

HAMISH_MCTAVISH

Fathom compared the prices of 93 properties sold at auction in August against a Zoopla estimate:eek: of what the same property would have achieved on the open market.

:rotfl::rotfl::rotfl::rotfl:

WOW, such scientific rigour, no wonder daddytroll is convinced.

The rest of us will no doubt continue to take it with a very large pinch of salt.....:D